Sunday newspaper share tips

By This Is Money
Updated: 02:59 EDT, 6 December 2010

We round-up all the share tips from the weekend newspapers.

FINANCIAL MAIL'S MIDAS

Midas takes a look at the prospects for Davis Service Group that hires doormats to shops across Europe, which could be tapping into a goldmine by hiring uniforms to NHS nurses.

›› Read the full Midas column

SUNDAY TELEGRAPH

Shares in TV camera and photography group Vitec (585p) have had a good run after the company said it was going to beat expectations in the current year, but the next couple of years could be just as exciting.

The group, which distributes camera and lighting supports, plans to take advantage of the push towards high-definition services globally, which is resulting in studio revamps.

It has also patented studio lighting products that are based on LEDs, which cut energy bills by around 95%, meaning that studios can get payback on the investment within about two years.

In its photography business, the group plans to launch a range of lightweight tripods aimed at amateur photographers under its Manfrotto brand.

Vitec has also moved into the military, aerospace and government areas using integrated microwave technologies. It has developed a system that uses very clear and uninterrupted video streams that can be used to monitor crowds from helicopters, or can be used by government agencies in covert operations.

The company's last trading update at the end of October noted that trading had been stronger than expected, with revenues and margins both growing. Net debt stands at about £31m which, when compared with the group's market capitalisation of £252m, means the balance sheet is robust. The shares are trading on a reasonably high rating. The current-year earnings multiple is 15, falling to 13.6 next year, and the shares are yielding 3.2%.

The prospects for its new Manfrotto range, early next year, look good and, if the company delivers on its military and government imaging strategy, the future could be very bright. Buy.